If your plan receives audited financial statements, they may be accompanied by a management letter. This can be a valuable resource when it comes to making your plan more efficient and identifying potential risk associated with plan qualification and ERISA compliance.
New rules will change the way nonprofits report and describe their net assets. These changes will reduce the number of net asset classes from three to two and require separate subtotals for activities with and without donor restrictions.
If your company is involved in a merger or spinoff, you’ll need to plan carefully for how your qualified retirement plan will be affected. Failure to plan ahead for the impact of a merger or spinoff on your plan could lead to unintended consequences.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This standard eliminates the transaction- and industry-specific revenue recognition guidance under the current GAAP and replaces it with a principle-based approach for determining revenue recognition. The FASB has subsequently issued multiple ASUs that modify or add to the original standard.
The increase in available software options has led software companies to look for ways to differentiate themselves from their competition. An increasingly popular way to do this is to obtain a System and Organization Controls (SOC) report which addresses the internal control environment of the software companies to help ensure the application’s stability and security.
There are common management issues in employee benefit plans. Having the appropriate Complementary User Entity Control in place will assure to plan management that policies and procedures are being followed.
Before you can perform functional expense reporting, you should have a written policy in place addressing cost allocation. The policy should be reviewed at least annually and revisions made as necessary.
SOC 1 reports will look nearly identical under SSAE 18 as they did under SSAE 16, and changes to the reports will be minor, so there is not much that service organizations will have to change, especially Holtzman Partners clients. However, the shift to SSAE 18 does result in 5 main changes.
The new accounting guidance on nonprofit financial reporting applies to fiscal years beginning after Dec. 15, 2017 (calendar 2018 for calendar-year organizations); however, early adoption is permitted. So now is a good time to think through the impact the new accounting standards will have on your financial statements.